Introduction :: ISRAEL

Following World War II, Britain withdrew from its mandate of Palestine, and the UN proposed partitioning the area into Arab and Jewish states, an arrangement rejected by the Arabs. Nonetheless, an Israeli state was declared in 1948, and Israel subsequently defeated the Arab armies in a series of wars that did not end deep tensions between the two sides. (The territories Israel has occupied since the 1967 war are not included in the Israel country profile, unless otherwise noted.) On 25 April 1982, Israel withdrew from the Sinai Peninsula pursuant to the 1979 Israel-Egypt Peace Treaty. In keeping with the framework established at the Madrid Conference in October 1991, Israel conducted bilateral negotiations with Palestinian representatives and Syria to achieve a permanent settlement with each. Israel and Palestinian officials on 13 September 1993 signed a Declaration of Principles (also known as the "Oslo Accords"), enshrining the idea of a two-state solution to their conflict and guiding an interim period of Palestinian self-rule. The parties achieved six additional significant interim agreements between 1994 and 1999 aimed at creating the conditions for a two-state solution, but most were never fully realized. Outstanding territorial and other disputes with Jordan were resolved in the 26 October 1994 Israel-Jordan Peace Treaty.

Progress toward a final status agreement with the Palestinians was undermined by Israeli-Palestinian violence between 2001 and February 2005. Israel in 2005 unilaterally disengaged from the Gaza Strip, evacuating settlers and its military while retaining control over most points of entry into the Gaza Strip. The election of HAMAS to head the Palestinian Legislative Council in 2006 temporarily froze relations between Israel and the Palestinian Authority (PA). Israel engaged in a 34-day conflict with Hizballah in Lebanon from July-August 2006 and a 23-day conflict with HAMAS in the Gaza Strip from December 2008-January 2009. In November 2012, Israel engaged in a seven-day conflict with HAMAS in the Gaza Strip. Direct talks with the Palestinians most recently launched in July 2013 but were suspended in April 2014. The talks represented the fourth concerted effort to resolve final status issues between the sides since they were first discussed at Camp David in 2000. Three months later HAMAS and other militant groups launched rockets into Israel, which led to a 51-day conflict between Israel and militants in Gaza.

Lake Tiberias (Sea of Galilee) is an important freshwater source; the Dead Sea is the second saltiest body of water in the world (after Lake Assal in Djibouti); in 2017, there were 422 settlements in the Israeli-occupied territories - 42 settlements in the Golan Heights, 380 sites in the occupied Palestinian territories to include 213 settlements and 132 outposts in the West Bank, and 35 settlements in East Jerusalem; there are no Israeli settlements in the Gaza Strip, as all were evacuated in 2005 (2017)

Government :: ISRAEL

etymology: named after the ancient Kingdom of Israel; according to Biblical tradition, the Jewish patriarch Jacob received the name "Israel" ("He who struggles with God") after he wrestled an entire night with an angel of the Lord; Jacob's 12 sons became the ancestors of the Israelites, also known as the Twelve Tribes of Israel, who formed the Kingdom of Israel

history: no formal constitution; some functions of a constitution are filled by the Declaration of Establishment (1948), the Basic Laws, and the Law of Return (as amended)

amendments: proposed by Government of Israel ministers or by the Knesset; passage requires a majority vote of Knesset members and subject to Supreme Court judicial review; 11 of the 13 Basic Laws have been amended at least once, latest in 2018 (2018)

residency requirement for naturalization: 3 out of the 5 years preceding the application for naturalization

note: Israeli law (Law of Return, 5 July 1950) provides for the granting of citizenship to any Jew - defined as a person being born to a Jewish mother or having converted to Judaism while renouncing any other religion - who immigrates to and expresses a desire to settle in Israel on the basis of the Right of aliyah; the 1970 amendment of this act extended the right to family members including the spouse of a Jew, any child or grandchild, and the spouses of children and grandchildren

cabinet: Cabinet selected by prime minister and approved by the Knesset

elections/appointments: president indirectly elected by the Knesset for a 7-year term (limited to 1 term); election last held on 10 June 2014 (next to be held in 2021 but can be called earlier); following legislative elections, the president, in consultation with party leaders, tasks a Knesset member (usually the member of the largest party) with forming a government

judge selection and term of office: judges selected by the Judicial Selection Committee consisting of 3 Supreme Court judges, 2 Cabinet members including the Minister of Justice as chairman, 2 Knesset members, and 2 representatives from the Israel Bar Association; judges can serve up to mandatory retirement at age 70

subordinate courts: Court for Administrative Matters; district and magistrate courts; national and regional labor courts; special and religious courts

white with a blue hexagram (six-pointed linear star) known as the Magen David (Star of David or Shield of David) centered between two equal horizontal blue bands near the top and bottom edges of the flag; the basic design resembles a traditional Jewish prayer shawl (tallit), which is white with blue stripes; the hexagram as a Jewish symbol dates back to medieval times

note: the Israeli flag proclamation states that the flag colors are sky blue and white, but the exact shade of blue has never been set and can vary from a light to a dark blue

note: adopted 2004, unofficial since 1948; used as the anthem of the Zionist movement since 1897; the 1888 arrangement by Samuel COHEN is thought to be based on the Romanian folk song "Carul cu boi" (The Ox Driven Cart)

Economy :: ISRAEL

Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset by tourism and other service exports, as well as significant foreign investment inflows.

Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. Israel's economy also weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.

Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.8% per year during the period 2014-17. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.

Income inequality and high housing and commodity prices continue to be a concern for many Israelis. Israel's income inequality and poverty rates are among the highest of OECD countries, and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2018 with consumers benefitting from low inflation and a strong currency.

In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.

domestic: good system of coaxial cable and microwave radio relay; all systems are digital; competition among both fixed-line and mobile cellular providers results in good coverage countrywide; Israeli cellular providers upgraded to 4G in 2014

state broadcasting network, operated by the Israel Broadcasting Authority (IBA), broadcasts on 2 channels, one in Hebrew and the other in Arabic; 5 commercial channels including a channel broadcasting in Russian, a channel broadcasting Knesset proceedings, and a music channel supervised by a public body; multi-channel satellite and cable TV packages provide access to foreign channels; IBA broadcasts on 8 radio networks with multiple repeaters and Israel Defense Forces Radio broadcasts over multiple stations; about 15 privately owned radio stations; overall more than 100 stations and repeater stations (2008)

18 years of age for compulsory (Jews, Druze) military service; 17 years of age for voluntary (Christians, Muslims, Circassians) military service; both sexes are obligated to military service; conscript service obligation - 32 months for enlisted men and 24 months for enlisted women (varies based on military occupation), 48 months for officers; pilots commit to 9-year service; reserve obligation to age 41-51 (men), age 24 (women) (2015)

Terrorism :: ISRAEL

area(s) of operation: Israel and West Bank settlements, where operatives have conducted bombings and shootings against Israeli Arabs and Palestinians; considered to be operationally inactive in recent years

area(s) of operation: responsible over the years for numerous lethal rocket attacks fired into Israeli territory from Lebanon into densely populated areas, especially Nahariyya and Ashqelon

Al-Aqsa Martyrs Brigade (AAMB):

aim(s): drive the Israeli military and West Bank settlers from the West Bank and impel Israelis to leave Jerusalem and, ultimately, establish a Palestinian state comprising the West Bank, Gaza Strip, and Jerusalem

area(s) of operation: launches rockets and missiles into southern Israel from the Gaza Strip; conducts suicide bombings in Tel Aviv and Jerusalem; on 27 January 2002, operative Wafa IDRIS became the first known Palestinian female suicide bomber and the first known female suicide bomber to conduct an attack inside Israel, when she detonated her vest in Jerusalem, killing an 81-year-old woman and wounding at least 100 other people

Army of Islam (AOI):

aim(s): disrupt Israel's efforts to provide security and, ultimately, destroy the state of Israel to establish a regional Islamic caliphate

area(s) of operation: has a history of launching rocket attacks into Israeli territory mostly from the Gaza Strip; attacks have ebbed in recent years

Hizballah:

aim(s): destroy the state of Israel

area(s) of operation: has been operational across Israel at various times since Hizballah's incepetion in 1982, especially in the north, and launching numerous rockets and other airborne projectiles and devices into Israeli towns in many regions; on 12 July 2006, a 34-day military conflict between Hizballah and Israel was precipitated when Hizballah fired rockets on several Israeli towns, while operatives crossed into northern Israel from southern Lebanon to attack an Israeli army convoy, killing eight and abducting two soldiers; intense fighting took place in Lebanon, northern Israel, and the Golan Heights until a UN-brokered ceasefire went into effect on 14 August 2006; responsible for hundreds of Israeli deaths over the years

ISIL Sinai Province (formerly Ansar Bayt al-Maqdis):

aim(s): destroy the state of Israel and, ultimately, establish a regional Islamic caliphate

area(s) of operation: launches rockets into southern Israel from the Sinai Peninsula, primarily in the Eshkol region and approaching the southern city of Elat; outlawed in Israel

area(s) of operation: operatives have launched tens of thousands of projectiles directed at Israeli urban areas over the years, resulting in numerous long-running lethal conflicts between HAMAS and Israeli forces; primarily stages projectile attacks from the Gaza Strip into Israel; regularly digs underground tunnels leading to Israeli territory for the purpose of smuggling fighters or supplies in and out of the country; on 25 June 2006, operatives kidnapped Israeli soldier Corporal Gilad SCHALIT near the Kerem Shalom crossing in southern Israel and held him until 18 October 2011, when he was released as part of a prisoner exchange; two soldiers were killed and two others injured during the kidnapping

Mujahidin Shura Council in the Environs of Jerusalem (MSC):

aim(s): destroy the state of Israel

area(s) of operation: primarily operational in the south, with a limited presence by 2017; the majority of veteran members have defected to join other groups; had previously participated in numerous rocket attacks into southern Israel's populated areas, such as Sderot, from the Gaza Strip and Egypt; most of the launchings were in coordination alongside the Army of Islam (AOI), another US-designated foreign terrorist organization

Palestinian Islamic Jihad (PIJ):

aim(s): committed to the destruction of Israel and creation of an Islamic state in all of historic Palestine as defined by the British Mandate, including contemporary Israel, the Gaza Strip, and the West Bank

area(s) of operation: launches attacks from the Gaza Strip into Israel; responsible for thousands of rocket attacks and numerous suicide bombings against Israeli civilians and military personnel over the years, primarily in southern Israel; PIJ's first female suicide bomber killed 22 people and wounded 60 others on 2 October 2003, when she detonated a powerful explosive at the Maxim Restaurant in Haifa

Palestine Liberation Front (PLF):

aim(s): destroy Israel and, ultimately, establish a Palestinian state

area(s) of operation: maintains a limited operational presence; until recent years, operatives conducted occasional shooting and IED attacks against Israeli military and security targets inside Israel, including bombing Israeli planes

PFLP-General Command (PFLP-GC):

aim(s): destroy the state of Israel

area(s) of operation: primarily northern Israel; attacks have ebbed in recent years

Popular Front for the Liberation of Palestine (PFLP):

aim(s): destroy the state of Israel and, ultimately, establish a secular, Marxist Palestinian state

area(s) of operation: mostly active near Jerusalem; on 18 November 2014, four members with guns, axes, and knives stormed the Kehilat Bnei Torah Synagogue in West Jerusalem, during prayer services, killing four rabbis and a congregant and wounding at least eight; responsible for several attacks on citizens over the years

Transnational Issues :: ISRAEL

West Bank and Gaza Strip are Israeli-occupied with current status subject to the Israeli-Palestinian Interim Agreement - permanent status to be determined through further negotiation; Israel continues construction of a "seam line" separation barrier along parts of the Green Line and within the West Bank; Israel withdrew its settlers and military from the Gaza Strip and from four settlements in the West Bank in August 2005; Golan Heights is Israeli-occupied (Lebanon claims the Shab'a Farms area of Golan Heights); since 1948, about 350 peacekeepers from the UN Truce Supervision Organization headquartered in Jerusalem monitor ceasefires, supervise armistice agreements, prevent isolated incidents from escalating, and assist other UN personnel in the region